EPA proposes higher biofuel blending volumesEPA proposes higher biofuel blending volumes

Energy groups praise the inclusion of three years of blending requirements.

Rachel Schutte, Content Producer

December 1, 2022

3 Min Read
Person filling car with fuel
Getty/Willard

The Environmental Protection Agency today released the proposed Renewable Fuels Standard “Set” rule, which increases the amount of ethanol and biofuels oil refiners must blend into fuel for the next three years. The announcement also includes series of important modifications to strengthen and expand the RFS program.

The agency's long-awaited proposal outlines overall blending mandates of 20.82 billion gallons in 2023, 21.87 billion gallons in 2024, and 22.68 billion gallons in 2025.

Proposed volume targets

Next year’s RFS requirement includes 15 billion gallons coming from conventional biofuels such as corn ethanol – a major win for the ethanol industry. The conventional biofuels requirement is set at 15.25 billion gallons for both 2024 and 2025.

The agency included a supplemental volume of 250 million gallons on top of the 2023 standards to compensate for volumes that weren’t blended in previous years. This comes as a result of the 2017 court case brought against EPA by RFA and other farm and biofuel groups.

The Renewable Fuel Standard was developed in 2005 to encourage higher use of ethanol, biodiesel and other plant-based fuels for vehicles. The law requires oil refiners to blend certain amounts of biofuels into fuel or buy tradeable credits called RINs from those that do.

While Congress initially set out blending goals through 2022, today’s proposal expands EPA's authority for 2023 and beyond. Starting next year, the agency will have leeway to set multi-year mandates and make other changes.

Energy groups share mixed reactions

“EPA’s proposed rule solidifies a role for the Renewable Fuel Standard in future efforts to reduce carbon emissions and enhance our nation’s energy security,” says Renewable Fuels Association president and CEO Geoff Cooper. “RFA thanks Administrator Regan and the Biden administration for continuing to make good on their commitment to grow the marketplace for lower-carbon, lower-cost renewable fuels”

Numerous groups praise the agency for outlining blending volumes for the next three years. “Multi-year targets help provide clarity the market needs to lean into climate benefiting transportation fuels such as ethanol,” says Brian Jennings, American Coalition for Ethanol CEO.

However, not all groups are celebrating EPA's proposal. The Clean Fuels Alliance America criticizes the rule saying it undercuts investments in biodiesel and renewable diesel capacity and provides provide no space for sustainable aviation fuel. "The minor increases for biomass-based diesel volumes in 2023, 2024 and 2025 are below the industry’s existing production and ignore the clean fuels industry’s significant investments in new capacity," the Alliance says.

On July 22, Growth Energy and EPA submitted a consent decree agreement that requires EPA to propose the 2023 renewable fuel volume requirements no later than November 16, and Growth Energy agreed to a two-week extension on the proposal earlier this month. Based on the agreement, the requirements must be finalized no later than June 14, 2023.

“We look forward to working with agency as it finalizes this proposal so that we’re tapping the full potential of the RFS and meeting EPA’s final rule deadline included under a consent decree with Growth Energy,” says Growth Energy CEO Emily Skorr. “America’s biofuel producers and our farm partners are ready to lead the charge on climate and energy solutions, and a firm commitment to growth will offer regulatory certainty and predictability in the years ahead.”

EPA will hold a virtual public hearing on Jan. 10, 2023, for the proposed rule. An additional session will be held on January 11, 2023, if necessary, to accommodate the number of testifiers that sign-up to testify. Learn more about the hearing on EPA’s website.

About the Author

Rachel Schutte

Content Producer, Farm Futures

Rachel Schutte joined the Farm Progress team in 2021 as the content producer for Farm Futures. With a deep-rooted passion for agriculture and sustainability, Rachel brings a wealth of experience to her role. Before joining Farm Progress, she worked as a certified crop adviser at Insight FS and as communications manager for the American Society of Agronomy.

Growing up around her family's dairy farms in central Wisconsin, Rachel developed a firsthand understanding of the challenges and opportunities facing producers. This background fuels her dedication to delivering timely, accurate and relevant agricultural news to farmers across the country, ensuring they have the information they need to succeed amidst their busy schedules.

Rachel now resides in Northeast Iowa, where she farms corn and soybeans and raises cattle with her husband and his family. She embraces her creative side by running a hobby business growing flowers and crafting items she sells at local farmers markets and craft fairs. A graduate of the University of Wisconsin-Platteville, Rachel is currently pursuing her master's degree at West Virginia University.

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